The growth challenge of most SaaS vendors can be boiled down to the following simple formula:

revenue growth = price x volume = average MRR x new sales velocity

Delivering on the promise of low total cost of ownership, the price of SaaS is often an order of magnitude lower than the price of licensed enterprise software. This low price point creates enormous pressure on volume. Reaching profitability may require a new customer every week, every day or even every minute! Increasing sales velocity is the essence of the SaaS business challenge.

At each stage of the buying process, your SaaS prospect will encounter adoption costs and risks that reduce your sales velocity. I like to compare this to scaling a cliff where adoption costs are measured by the height of the cliff and adoption risks are measured by the difficulty of the climb.

How high are the adoption costs and risks that your SaaS prospects must surmount?

…Here are seven proven strategies for increasing SaaS sales velocity by reducing the adoption costs and risks more >>>

Accelerating revenue growth amounts to increasing volume and increasing price. For most software-as-a-service businesses, volume equals the number of paying customers that are using the product and price equals the lifetime value of each customer's subscription.

This is the second post in a series of tips for SaaS sales executives. The first post focused designing an effective sales organization. This post is concerned with creating and managing an effective, efficient sales process.

these strategic decisions can make or break the growth and profitability of the business, because more than any others they determine the balance between maximizing revenue and minimizing acquisition cost. They are some of the toughest choices a SaaS Sales VP or CEO has to make.

This is the fourth and final post in a series of tips for SaaS sales executives. The first three posts focused on designing an effective SaaS sales organization, SaaS sales process efficiency, and accelerating revenue growth.

Chaotic Flow by Joel York

The goal of this blog is to share knowledge and opinions that will help executives at Internet software companies that create and deliver SaaS and cloud applications critically analyze real-world, go-to-market strategies and tactics by applying sound business principles
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